If you consider selling your business, one of the most important aspects you think about is the legal structure of the sale. Privately owned company sales are typically structured in two different categories: asset sales and equity sales. If you need reliable legal help, you should talk to a rollover equity connecticut lawyer– the expert will help you better understand which type of sale suits your financial profile. Of course, he will guide you through the entire legal process.
Finding the perfect legal structure is challenging because buyers and sellers have certain perspectives, wants, and interests. Typically, the buyers will look for asset sales, while the business sellers are more after an equity sale. So what is an asset sale? In this sale, the buyer will purchase the exact assets he wants. Flexibility is the number one reason why buyers prefer this type of sale. They can choose the precise assets they want, and the buyer does not have to assume any of the seller’s liabilities. Sometimes, the buyer may have to “accept” the seller’s liability, but these cases are rare.
The asset sale is rather time-consuming and quite complex compared to an equity sale. Each important asset must be identified and then transferred, while tangible assets (such as equipment) can be transferred with the help of a bill of sale. Deeds are needed to move any land or buildings (real estate property), while quite often, key assets cannot be transferred (here, we can include different business licenses or permits, etc.)
In an equity sale, buyers will acquire the entire equity in the respective company from the equity holder. When we discuss an equity business sale, the assets and the liabilities stay unchanged. The only thing that changes in such a sale is the owner/s of the company. There are different ways to custom-tailor the perfect sale of a privately owned business. For more information, contact a reputable rollover equity connecticut lawyer who will help you design and create an advantageous sale st